The Seoul Southern District Prosecutors’ Office has confirmed that they are investigating Lee Sang-jun, Chief Executive Officer of Bithumb, but have not provided more details

Law enforcement officials in South Korea are currently investigating Lee Sang-jun, the Chief Executive Officer of Bithumb, over allegations that he accepted bribes in return for listing digital currencies on the platform, according to sources.

The Seoul Southern District Prosecutors’ Office has confirmed that they are investigating Lee Sang-jun, Chief Executive Officer of Bithumb, but have not provided further details. This comes after a police raid on Sang-jun’s residence as well as Bithumb’s office.

Apart from Bithumb, Coinone, another South Korean exchange, is also being investigated over similar allegations against an ex-employee who reportedly received bribes to list specific tokens on the platform. The prosecution has not disclosed the identity of the former employee, citing the country’s privacy laws.

In South Korea, exchanges are accountable for token listings, operating under the Digital Asset Exchange Joint Consultative Body (DAXA), which includes top platforms.

To establish better oversight, regulators in the country are suggesting a new legal framework that would require token issuers to seek consent from financial authorities. This proposal is expected to be included in the forthcoming Digital Asset Basic Act, which will provide an all-inclusive regulatory framework for digital currencies and exchanges.

As per the proposed law, tokens will only be exempt from regulatory scrutiny in case they are already listed on leading exchanges. Though, it is not certain whether Digital Asset Exchange Joint Consultative Body will renounce its authority.

The recent collapse of Terra’s ecosystem led to a strong reaction from regulators, including several raids on exchange offices and a revamp of the existing legal framework for digital currencies.